Everything You Need to Know About the 2025 E-Invoicing Mandate in Germany – And How to Prepare
3. October 2024
Starting January 1, 2025, a major regulatory shift will take effect in Germany: electronic invoicing becomes mandatory for domestic B2B transactions. This legal requirement marks a significant step toward the digitalization and automation of financial processes.
Why Is E-Invoicing So Important?
Electronic invoices are created in a structured, machine-readable format – such as XML – allowing seamless integration with accounting and ERP systems. Unlike traditional PDF or paper-based invoices, e-invoices can be processed automatically, significantly reducing manual errors and accelerating the entire invoicing workflow. To be legally compliant, e-invoices must follow the European standard EN 16931.
Who Is Affected?
The regulation applies to all businesses based in Germany – regardless of industry or company size. Starting in 2025, all companies must be able to receive and process electronic invoices. Sending e-invoices will also become mandatory, although small businesses with an annual revenue below €800,000 will benefit from an extended transition period until 2027. Paper invoices will no longer be allowed, except in narrowly defined exceptional cases.
Exceptions and Special Rules
Some types of invoices are excluded from the requirement, such as small-value invoices below €250. Additionally, there are specific rules for certain industries like agriculture and forestry. However, all businesses must complete their transition to e-invoicing by 2028 to remain compliant.
Technical Requirements
To meet the e-invoicing mandate, companies need to implement suitable software solutions capable of generating, receiving, and archiving electronic invoices. These systems must comply with legal requirements such as those outlined in § 29 of the German VAT Act (UStG) and ensure secure, audit-proof data processing. Structured electronic formats are essential for automated workflows and compliance.
How CONVOTIS Can Help
CONVOTIS offers end-to-end IT solutions tailored to meet the regulatory and technical demands of the new e-invoicing landscape. With seamless integration into existing system environments, flexible customization options, and a strong focus on security and compliance, CONVOTIS ensures your business is fully prepared. Our solutions comply with the European standard, enabling legally secure and efficient invoice processing.
Why Businesses Need to Act Now
Companies that take timely action and modernize their invoicing systems stand to benefit beyond compliance. Streamlined digital workflows increase operational efficiency, reduce errors, and help businesses stay competitive. From 2025 onward, e-invoicing will no longer be optional – it will be a legal obligation for all companies in Germany.
